Options

We offer a full range of options on stock indices, forex, commodities and individual shares. All your option trading can be done either online or over the phone.

An option is a type of derivative, that is, a financial instrument which is derived from the price of the underlying instrument. At IG Markets we offer trades on both types of option, calls and puts:

• A call option is the right to buy a particular instrument at a specified fixed level on or before a fixed date. For example, 8pm 23rd of June USD/JPY 9000 call is the right to buy the 23rd June 20:00 USD/JPY USD1 = 90.00 yen (the 'strike price') on or before a particular expiry day in December.
• A put option is the right to sell an instrument at a specified fixed level on or before a fixed date. For example, 8pm 28th June 11000 EUR/JPY put is the right to sell EUR/JPY at EUR1 = 110.00 yen on or before the expiry date in September.

Options will be offered with a range of different strike prices, and option trades can be made in either direction. The price of an option is based on the level of the underlying market relative to the strike price, the time the option has left to expiry and the volatility of the underlying market.

You can trade out of your option position at any time or wait until its expiry and with IG Markets, options will always be cash settled, so you never have to worry about physical delivery.